Another Housing Bubble?

27 Feb

The residential real estate market is starting to heat up.  How do I know? Because no less than five of our clients have phoned or emailed us asking “Should I sell my home?”  My answer – maybe.

For one, ask yourself where you’ll live next?  While the rumors of getting multiple bids on listed homes is true, one reason so many folks bid on listed homes is so few homes are for sale.  That means, if you intend to buy another home after you’ve sold yours, you better plan on renting for a while until tat inventory problem normalizes.

house for sale

Two, why are you selling? I have many friends in the business of real estate.  So, I hope they don’t get angry about this next statement, but some agents don’t have your best interest at heart.  There are a lot of agents out knocking on doors, letting you know how much your home could sell for if listed.  While they may be right, don’t be pressured. Consider the entire situation.

What are your property taxes going to be in a new home? If you’ve lived over 15 years or more in one home, the extra cost of property taxes may shock you.  Consider all the costs of moving.  Repairs to the home to be sold, repairs on one to be bought, possible property and insurance increases, and of course just moving is an expensive pain in the tush!

One client is thinking seriously of selling and related a story where his realtor is pushing him to make many improvements.  While saying that, she is assuring him he’d get over 20 bids and his house would sell for more than he suspected it would. Well, if it is in such great demand, why not make the buyer upgrade?  What would be the point of you making upgrades as long as things are up to code?

Here is a handy article about all kinds of remodels and which ones will or won’t really be a good investment.  Check it out here.

If you have questions on your own property, let me know.  We have no dog in that fight so we’re happy to give unbiased and quality financial guidance on this very important topic.  Selling or buying a home is not entirely a fiscal equation.  However, it is likely to be one of your largest financial moves, don’t you think you should talk that over with a financial planner?

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